#Liquidity101 What Is Liquidity and Why It Matters 📊

Liquidity = How easily you can buy or sell an asset without impacting its price.

Here’s what you need to know:

🔹 High Liquidity = Lots of buyers & sellers. Fast trades, tight bid-ask spreads (e.g., major stocks like AAPL, ETFs like SPY).

🔹 Low Liquidity = Fewer market participants. Slower trades, wider spreads, more price volatility (think penny stocks or niche cryptos).

🔹 Why It Matters:

✔️ Easier entry/exit

✔️ Lower transaction costs

✔️ Less slippage

💡 Pro Tip: Before trading, always check volume and spread—it can save you money.

Stay tuned for real-world examples and tools to measure liquidity! 💼

#FinanceBasics #MarketTips #Trading101 #InvestSmart #LiquidityMatters